The South African government is preparing to select a transaction consultant to support the establishment of a fully independent Transmission System Operator (TSO) by the end of next year, in a process expected to include engagement with potential equity investors and investments of approximately 440 billion rand ($27.5 billion).
According to Bloomberg, the creation of the TSO represents a critical milestone in South Africa’s electricity sector reform, which aims to liberalise the grid to attract power generation by private producers and establish a platform for competitive energy trading — following years of load-shedding that severely damaged the economy.
The announcement sets an ambitious timeline for the transfer of transmission assets from state power utility Eskom Holdings to the new operator.
“The appointed consultants will provide integrated financial, legal, and tax advisory services to advise the National Treasury on the detailed structuring of the transaction and a creditor engagement strategy, in addition to providing support to the National Treasury,” the state-owned Development Bank of Southern Africa said in a request-for-proposals document.
The consultant should, “where necessary, provide advice and facilitate engagement with potential minority investors, in order to reduce the fiscal impact of the transaction,” the document added.
The deadline for submission of applications is 28 September.
Eskom supplies the majority of electricity consumed in South Africa, primarily through coal-fired power stations, and has opposed the separation of its transmission assets into an independent entity, arguing that the move would strip the company of a profitable division. President Cyril Ramaphosa, however, supports the transfer of asset ownership to the TSO.
The required improvements to South Africa’s electricity grid over the next decade are expected to demand investments of approximately 440 billion rand ($27.5 billion), enabling the connection of new renewable energy plants as coal-fired units are progressively decommissioned.
According to the document, the TSO must have the capacity to mobilise the resources needed to finance transmission infrastructure.
The selected consultants will aim to complete the establishment of the system operator before 2028. Their responsibilities will include reviewing a proposal drawn up by Ramaphosa’s task team charged with restructuring Eskom, as well as identifying the approvals required from existing creditors and bondholders.
The consultants will also be expected to advise the National Treasury on potential conflicts of interest.
The Eskom unbundling plan, which envisages splitting the company into separate transmission, generation, and distribution units, has faced repeated delays over the years, including difficulties related to securing creditor approval.
The state utility has also warned that separating the distribution unit alone is complex, owing to a 120 billion rand ($5.7 billion) debt owed by municipalities to Eskom in outstanding payments.
“The unbundling process can now be accelerated,” said Busisiwe Mavuso, chief executive of Business Leadership South Africa, a business lobby group, in a statement issued on Monday. “It would be extremely positive if this timeline could be met.”
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/08/mundo/africa/africa-do-sul-governo-preve-investimento-de-mais-de-27-m-para-modernizar-rede-electrica/
